Otis and the Central Role of Information and IT May 18, 2011
I. Key Business Objectives
Bousbib developed several key business objectives in response to the changing operational landscape of elevators, escalators and moving walkways industry. No longer would Otis be considered an “old-line industrial company.” Among these key initiatives and changes were:
* Vision: Become the “recognized leader in service excellence among all companies – not just elevator companies – worldwide.”
* Culture: Change the norms, values and processes of Otis – how they do business – so that the company focus shifts from a manufacturing company to that of a service company. Become the number ...view middle of the document...
This led to more efficient processes and in turn, more accessible and shared data between different areas of the company. These previous areas affected were:
* Engineering: Integrate the products and operations of the many acquired companies into Otis while also shifting from a regional to a global product strategy. Use of SIMBA program to change the product structure and design process and reduce unnecessary overhead.
* Supply Chain: Streamline operations by reducing the number of factories – falls in line with company vision of bring a service company. Reorganized the supply function into a global supply chain – use of e*Logistics a key requirement for this.
* Sales: No clear best practices checklists until the SIP program. SIP led to a standardization of best practices across the organization. Helped customers define their needs and brought sales and field teams together.
III. E*Logistics: An Information Enabler
The critical component of Bousbib’s plan to integrate the company’s information systems and connect the many different operations (sales, factory, field installation, etc) with one another was the e*Logistics program. Traditional practices were to focus on the flow of the product. This was now shifting to a focus on the flow of information. Whereas previous systems such as SIP provided some improvements, these did not stick and became inconsistent. By enabling the e*Logistics program, these best practices are reinforced and “baked” into the organization and standardized. Some of the changes made by enabling e*Logistics included:
* Coordination: The program required the approval of both the sales and the field installation supervisors, so that both worked together through the life of the project. E*Logistics automated the data sharing processes and fed the information to the financial systems.
* Sales Processing: Became more automated with the use of e*Logistics. Data flowed through from the initial proposal acceptance, and circulated important information to key supervisors....